Buying a Florida home – a UK mortgage for property in Florida
You should start the process of obtaining a mortgage for property in Florida before you actually begin looking for the Florida home itself. This way you will be able to move quickly to snap up Florida property as soon as you see a home which is right for you. You must also make the decision to take a mortgage with a Florida bank or a UK lender.A UK mortgage for property in Florida
You cannot get a mortgage on Florida property from the UK as banks only lend money against property in the same country. This means you would need to remortgage your main home to buy your Florida home.
For those who have substantial equity in their home, or who have no domestic mortgage, taking out a UK mortgage for property in Florida is an attractive option. However, taking a UK mortgage for property in Florida means it would not be your Florida home which would be repossessed if you default on the repayments. Before taking the decision to obtain a UK mortgage for property in Florida you must be certain that your main residence and other UK assets will be at risk.
Advantages to buying Florida property with a UK mortgage
- No legal or Land Registry fees if you already have a UK mortgage and obtain a further advance.
- You may be able to negotiate a cheaper borrowing rate with your bank.
- There is a more comprehensive range of mortgage products and greater flexibility for repaying a loan to buy a Florida home.
- You may be able to raise more money for your Florida home with a UK mortgage. No risk from currency fluctuation when taking a mortgage for property in Florida from a UK lender.
A Florida mortgage for buying your Florida property
This typically means incurring higher set up costs. Whilst there are many advantages to taking a UK mortgage for property in Florida, there are also drawbacks.
The advantages of buying a Florida home using a local mortgage include:
- Establishing a US credit record making it easier to make major purchases in future.
- If you are renting out your Florida villa then you may be able to reduce your overseas tax bill by offsetting the cost of the mortgage against income received.
- A Florida mortgage may also be able to reduce the net value of your Florida villa, significantly reducing the inheritance tax payable upon death.
Before committing to any mortgage for property in Florida you must look at both options and work out what is most favourable according to your own individual circumstances. Decide which offers you the most security and financial incentives when arranging finance for your Florida property. Take professional advice if necessary before deciding how Florida villas are best financed.
